Vietnam ranks 6th in Southeast Asia in Knight Frank's wealth report

Vietnam accounted for 0.2% of the total high-net-worth individual (HNWI) population, with 5,459 individuals possessing liquid assets of over $10 million, ranking sixth in Southeast Asia, according to Knight Frank.

The information was mentioned in the consultancy's recently-released The Wealth Report (TWR) edition, which provides in-depth insights into global wealth creation, movement, and management.

The previous editions show that Vietnam consistently recorded high growth rates ranging from 5% to 18% before the Covid-19 pandemic. Post-pandemic, the growth rate has stabilized between 2.4% and 5%.

In terms of global growth, wealth continued to expand with a 4.4% increase in the number of HNWIs. The report highlights Asia as one of the fastest-growing regions for HNWIs, with an average regional growth rate of 5%.

Research from McKinsey & Company reinforces the upward trajectory of wealth in Vietnam. The firm’s report, Wealth Management in Vietnam: A $600 Billion Wealth Market by 2027, highlights a 15% CAGR in wealth from 2011 to 2021, surpassing the regional average of 7%.

By 2027, personal financial assets in Vietnam are projected to reach approximately $600 billion. This steady wealth growth signals an increasing demand for comprehensive wealth management and real estate advisory services in the country.

Knight Frank’s findings align with these insights, noting that 44% of family offices in the world plan to increase their investments in real estate, driven by both growth opportunities and wealth preservation.

The report further underscores the prominence of real estate in investment strategies. Many respondents see real estate as part of a broader portfolio, balancing it with equities and venture capital.

Real estate continues to be seen as a stable, long-term asset that protects purchasing power and generates reliable returns.

Next Neighbourhoods

In Vietnam, the luxury apartment market is rapidly emerging, particularly in key locations like Ho Chi Minh City and Hanoi.

“Driven by the growth of local HNWIs and global trends in real estate investment, Vietnam continues to attract both local and foreign capital. The luxury residential segments in HCMC and Hanoi are poised for sustained growth, further cementing the country’s position as a leading destination for luxury living in Southeast Asia,” said Son Hoang, valuation and advisory associate director, Knight Frank Vietnam.

In HCMC, prime locations such as Thu Thiem and Phu My Hung are becoming hotbeds for luxury developments, attracting affluent buyers and international investors, Knight Frank wrote.

Thu Thiem, in particular, is gaining attention due to its direct connection to the core central business district (CBD) and ongoing development plans.

In Hanoi, Westlake stands out as a prime destination for luxury apartment projects. The area’s continued growth in infrastructure and services makes it a top choice for HNWIs seeking sophisticated living spaces in one of Hanoi’s most prestigious addresses, the consultancy added.